The Fair and Accurate Credit Transactions (FACT) Act, via regulations known as the Red Flags Rule, requires the University to develop and implement a program to detect, prevent, and mitigate identity theft in connection with the opening of a covered account or any existing covered account.
The above-referenced program relies on the identification of and response to red flags that might indicate the existence of identity theft.
Account means a continuing relationship established by a person with the University to obtain a product or service for personal, family, household, or business purposes. Account includes:
Covered account means:
Customer means a person who has a covered account with the University.
Identity theft means a fraud committed or attempted using the identifying information of another person without authority.
Red flag means a pattern, practice, or specific activity that indicates the possible existence of identity theft. See Appendix A for categories and examples of red flags.
Service provider means a person that provides a service directly to the University.
The President of the University shall designate an appropriate individual to serve as the Program Administrator. The Program Administrator will be involved in the oversight, development, implementation, and administration of the program.
The University shall identify relevant red flags for the covered accounts it offers or maintains, where sources of red flags include but are not limited to:
The University shall be alert to detect identified red flags and shall endeavor to prevent identity theft by means such as:
The University shall respond appropriately, considering the degree of risk posed, to any red flags that are detected to prevent and mitigate identity theft, considering the following.
Aggravating factors that may heighten the risk of identity theft, such as a data security incident that results in unauthorized access to a customer’s account records held by the University or a third party, or notice that a customer has provided information related to a covered account held by the University to someone fraudulently claiming to represent the University or to a fraudulent Web site.
Appropriate responses to detected red flags may include the following:
Periodically, the Program Administrator will work with relevant offices to determine whether the University offers or maintains covered accounts. As part of this determination, the University will conduct a risk assessment, taking into consideration:
Each University office designated by the Program Administrator shall comply with the guidelines set forth in this policy as well as other applicable University policies and procedures including but not limited to the Safeguarding Financial Information Policy (aka, the GLBA Policy).
The University shall update the program periodically to reflect changes in risks to customers and to the safety and soundness of the University from identity theft based on factors such as:
The Program Administrator will coordinate with the University’s Internal Auditor to maintain the identity theft prevention program.
The University shall exercise appropriate and effective oversight of service provider agreements. When engaging a service provider to perform an activity in connection with one or more covered accounts, the University should take steps to ensure that the activity of the service provider is conducted in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft.
The University may require the service provider by contract to perform in accordance with the previous paragraph of this section, and to report any red flags to the University or to take appropriate steps to prevent or mitigate identity theft.
The University shall evaluate and adjust the identity theft prevention program as appropriate. At least annually, the Program Administrator should receive a report from designated employees regarding the University’s compliance with the identity theft prevention program. The Internal Auditor shall periodically audit the University’s compliance with this policy.
The University shall train employees, as necessary, to effectively implement the program. The Office of the General Counsel shall be responsible for the development of any training necessary to effectively implement the program.
5 Categories and 26 Examples of Red Flags
Original Issue Date: April 23, 2009